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HomeMy WebLinkAbout06 - Assessment District Alternative Procedures0 is • TO: Mayor and Members of the City Council FROM: Public Works Department October 10, 2000 CITY COUNCIL AGENDA ITEM NO. 4 I�uo� l CUJ O SUBJECT: INTRODUCTION OF ORDINANCE NO. TO THE CITY COUNCIL OF NEWPORT BEACH ADDING CHAPTER 3.33 TO THE NEWPORT BEACH MUNICIPAL CODE ENACTING AN ASSESSMENT DISTRICT ALTERNATIVE PROCEDURAL CHAPTER RECOMMENDATIONS: Introduce an ordinance adding Chapter 3.33 to the Newport Beach Municipal Code giving the City authority to assess leased property. 2. Schedule ordinance for adoption at the October 24`h City Council meeting. DISCUSSION: The City is currently processing an assessment district in Beacon Bay for the undergrounding of overhead utilities. Beacon Bay property owners have only leasehold interest in the property, because the City of Newport Beach is the underlying fee owner of the property. In order to assess the leasehold interest of the property, an ordinance must be in place. The proposed new ordinance will establish an alternative procedure to finance the acquisition and construction of certain public improvements and the maintenance, repair and replacement of certain public improvements, including the conversion of existing overhead electrical, communication or other utility facilities to underground locations, by means of special assessments. The ordinance will give the City a mechanism, when appropriate, to levy the assessment of the costs of certain public improvements against long -term leasehold interest in property owned in fee by the City. ZC etfully submitted, a.4- ., �W- PUBLIC WORKS DEPARTMENT Don Webb, Director By: — Richard L. H ff tadt, P.E. Development Engineer Attachment: Ordinance ORDINANCE NO. 2000 -_ • AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 3.33 TO THE NEWPORT BEACH MUNICIPAL CODE ENACTING THE ASSESSMENT DISTRICT ALTERNATIVE PROCEDURAL CHAPTER WHEREAS, the City of Newport Beach (the "City ") is a municipal corporation and charter city duly organized and existing under a freeholder's charter pursuant to which the City has the right and power to make and enforce all laws and regulations in respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Constitution ") and the Charter of the City (the "Charter"); and WHEREAS, the City Council of the City desires to establish an alternative procedure to finance the acquisition and construction of certain public improvements and the maintenance, repair and replacement of certain public improvements, including the conversion of existing overhead electric, communication or other utility facilities to underground locations, by means of special assessments; and WHEREAS, the City Council of the City desires, when appropriate, to levy the assessment of the costs of certain public improvements against long -term leasehold • interests in property owned in fee by the City; and WHEREAS, the City Council of the City finds that the public interest and necessity require the enactment of this Chapter to authorize, and establish the authorization and alternative procedure for, the formation of assessment districts by the City. NOW, THEREFORE, the City Council of the City of Newport Beach does ordain as follows: Section 1. Chapter 3.33 is added to Title 3 of Newport Beach Municipal Code to read as follows: CHAPTER 3.33 ASSESSMENT DISTRICT ALTERNATIVE PROCEDURES 3.33.005 Short Title. This Chapter shall be known as and may be cited as the "City of Newport Beach Assessment District Alternative Procedural Chapter." • Page 1 of 6 • 3.33.010 Provisions Not Exclusive; Applicability of Laws: Conflicting Provisions. The provisions of this Chapter are not exclusive. The power and authority conferred upon the City Council by the provisions of this Chapter are in addition to and supplemental to the powers conferred by any other Chapter of the City or law. The provisions of this Chapter shall not affect or limit any other provisions of law authorizing or providing for the furnishing of public improvements or the raising of revenue for these purposes. The City may use the provisions of this Chapter instead of any other method to finance part or all of the cost of providing the authorized kinds of public improvements. Additionally, the City Council may elect to follow the procedures now or hereafter provided by general law, including without limitation, the Act; provided, however, that whenever the City is acting pursuant to this Chapter, the provisions of this Chapter shall be controlling to the extent that they are in conflict with any of the provisions of such general law. 3.33.020 Definitions. Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this Chapter including all provisions incorporated into this Chapter by reference. • A. "Act' means the Municipal Improvement Act of 1913, as amended (Streets and Highways Code Section 10000 and following). B. 'Bond" or "bonds" means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long -term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long -term contracts. C. 'Bond Act" means the Improvement Bond Act of 1915 (the 'Bond Act "), as amended (Streets and Highways Code Section 8500 and following). D. "City" means the City of Newport Beach, California. E. "Clerk" means the City Clerk of the City. F. "Engineer" means the City Engineer or any other person designated by the City Council for the purposes of this Chapter, including any officer, board, or employee of the city or any private person or firm specially employed by the City as engineer for purposes of this Chapter. Notwithstanding the foregoing, the engineer shall be a registered professional engineer as defined in Government Code Section 53750(k)." Page 2 of 6 G. "Implementation Act' means the Proposition 218 Omnibus Implementation • Act, being Article 4.6 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (Section 53750 and following). H. "Land," "parcel," "parcel of land," "property," or "subdivision" means real property in any form, including a possessory interest. I. "Landowner," "owner of land," or "owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to the City to be the owner of the land. The City Council has no obligation to obtain other information as to the ownership of the land, and its determination of ownership shall be final and conclusive for the purposes of this Chapter. J. 'Possessory Interest' means a leasehold interest in tax - exempt real property for a term of 35 years or more (including renewal options). For purposes of this provision, tax - exempt real property means real property that is owned in fee by the City. 3.33.030 Declaration of Policy. As an alternative to any other method permitted by law, it is hereby declared to be the policy of the City to permit the financing of the acquisition and construction of certain • public improvements and the maintenance, repair and replacement of certain public improvements, including the conversion of existing overhead electric, communication or other utility facilities to underground locations, by means of special assessment proceedings pursuant to the authorization and procedure set forth in this Chapter. It is further declared to be the policy of the City when appropriate to levy the assessment of the costs of public improvements against long -term leasehold interests in property owned in fee by the City. 3.33.040 Authority and Procedure. A. Whenever the public interest and necessity so require, the City Council of the City may, acting under and pursuant to this Chapter, in compliance with the Implementation Act, establish an assessment district as provided for in the Act, or as such Act may be amended from time to time. B. Whenever the public interest and necessity so require, the City Council of the City may, acting under and pursuant to this Chapter, authorize, issue, sell, and deliver assessment district bonds as provided for in the Bond Act, or as such act may be amended from time to time. C� Page 3 of 6 • 3.33.050 Assessment of Possessory Interests. Assessments under this Chapter may be levied against possessory interests in the same manner as assessments may be levied against other real property. Assessments levied against possessory interests may be collected in the same manner as assessments levied against other real property that are collected, including collection through judicial proceedings. 3.33.060 Method of Collection; Alternative Methods. Unless an alternative method of collection of the assessments has been established as authorized by this Section, the assessments levied pursuant to this Chapter shall be collected at the same time and in the same manner as real property taxes are collected, and all laws providing for the collection and enforcement of real property taxes shall apply to the collection and enforcement of the assessments. The City Council in its discretion may, by resolution, establish an alternative method of collection of the assessments. Notwithstanding the foregoing, assessments levied pursuant to this Chapter for which bonds are to be issued may be paid within thirty (30) days from the date of recording the assessment in the Office of the Superintendent of Streets. 3.33.070 Form of Bonds; Maturities. Notwithstanding Sections 8650 and 8650.1 of the Bond Act, the City Council, in its • discretion, may determine, either (a) in the Resolution of Intention describing the improvement work or (b) thereafter in any manner not inconsistent with the Resolution of Intention as adopted, the denomination or denominations of the bonds, the maturity date or dates of the bonds, the place or places of payment of the principal of and interest on the bonds, and the form of the bonds. Unless provided otherwise by the City Council, the bonds shall be issued in series and the principal thereof shall be payable on the second day of September every year succeeding the first 12 months after their date, until the whole is paid. The bonds shall bear interest at a rate not in excess of the maximum rate permitted by law from their date on all sums unpaid, until the whole of the principal sum is paid. 3.33.080 Authority to Covenant to Secure Bonds. A. Whenever bonds are to be sold and delivered under this Chapter with respect to an assessment district, the City Council may, by resolution adopted prior to the sale and delivery of bonds, take any action the City Council deems appropriate to secure the timely payment of the principal of and interest on the bonds, including any one or more of the following: (1) Covenant for the benefit of bondholders shall not terminate any possessory interest subject to an assessment for which the bonds • were sold, or Page 4 of 6 (2) Notwithstanding Section 8769 of the Bond Act, covenant for the • benefit of bondholders to pay all or any portion of the principal of and interest on the bonds necessary because of delinquencies in the payment of one or more assessment installments or the inability to collect one or more assessment installments. B. When any amounts are paid by the City for the payment of the principal of and interest on bonds as a result of delinquent assessments, the delinquent assessments shall remain a charge against the property that was subject to the delinquent assessments. 3.33.090 Actions or Proceedings to Attack Assessments; Time for Perfection of Appeal. Any action or proceeding to attack, review, set aside, void, or annul the levy of an assessment or an increase in assessment pursuant to this Chapter shall be commenced within thirty (30) days after the assessment is approved by the City Council. Any appeal from a final judgment in that action or proceeding shall be perfected within thirty (30) days after the date of the judgment. Section 2. Severability. In the event any portion of this Chapter shall be declared illegal, unenforceable or • unconstitutional, such provision shall be deemed severable from the rest of the provisions of this Chapter. Section 3. Actions or Determinations by Local Agency. The City Council may take any actions or make any determinations which it determines are necessary or convenient to carry out the purposes of this Chapter and which are not otherwise prohibited by law. Section 4. Liberal Construction of Chapter -- Error, Irregularity, Neglect or Omission. This Chapter shall be liberally construed in order to effectuate its purposes. No error, irregularity, informality, and no neglect or omission of any officer, in any procedure taken under this Chapter, which does not directly affect the jurisdiction of the City Council to order the improvement, shall void or invalidate such proceeding or any levy for the costs of such improvement. Section 5. Effective Date. This Chapter shall take effect and be in full force on the thirtieth (30th) day after its adoption. Within fifteen (15) days of its adoption, the City Clerk shall cause this Chapter • to be published in a newspaper of general circulation in the City as required by law. Page 5 of 6 0 • • THE FOREGOING CHAPTER is approved and adopted by the City Council of the City of Newport Beach this day of 2000. THE CITY OF NEWPORT BEACH A Municipal Corporation MAYOR ATTEST: CITY CLERK fAuserstpbvAshareftoundRfy 2000- Moctober- Mbeacon bay ordinance.doc Page 6 of 6